Add Operating Lease

This screen is used to create and maintain information relating to operating leases.

Lease Name

Enter a unique name for this operating lease/hire purchase agreement.

Description

Enter description of the operating leases/hire purchase agreements if required in addition to the name.

Statutory Reporting Area

Select the statutory reporting area - i.e. Administrative, Cost of sales, or Distribution expenses. If you are unsure as to which statutory reporting area to select, consult your advisor or select administration.

Fund, Department and/or Activity

Where Department, Fund and/or Activity analysis is being used the asset may be allocated using the drop-down fields. System computed depreciation associated with the asset will be analysed to the selections.

Lease Inception Date

Enter the start date for the lease contract manually (e.g 19/12/2015) or click on calendar icon to select date from the calendar.

Lease Termination Date

Enter the end date for the lease contract manually (e.g 19/12/2015) or click on calendar icon to select date from the calendar.

First Payment Date

Enter the first payment date manually (e.g 19/12/2015) or click on calendar icon to select date from the calendar.

Regular Payment Period

Select period of payment i.e monthly, quarterly etc.

Regular Payment Amount

Enter the regular payment amount.

Regular Payment Count

Enter number of payments to be made. So for example, if the lease is for five years and the regular payments are quarterly then the number of payments to enter would be 20. The system will continue to post the payments until this count is used up or the lease is terminated.

Total Cost

The total cost of lease agreement is automatically calculated using the regular payment amount and the number of payments to be made but this can be changed.

Terminated

Click here if this operating lease or hire purchase agreement has been terminated.